When the domestic real gdp per capita increases then it has a negative effect on domestic currency (depreciation)? Why?

Source: The real exchange rate of euro and Greek economic growth, Gregory T. Papanikos, The Journal of Economic AsymmetriesVolume 12, Issue 2, November 2015, Pages 100-109.

  • $\begingroup$ where does it say so? Can you please post the source? $\endgroup$
    – london
    Jul 6 '19 at 20:17
  • $\begingroup$ The article seems to be paywalled at sciencedirect.com/science/article/pii/S1703494915000109 $\endgroup$
    – Henry
    Jul 6 '19 at 23:02
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    $\begingroup$ The article's abstract seems to say the opposite, that an excessively high real exchange rate damages GDP. A major cause is that it makes domestic production uncompetitive domestically (imports will be cheaper) and internationally (exports will be too expensive). Why go on holiday to Greece when Turkey gives you similar beaches and sun for a lower price? $\endgroup$
    – Henry
    Jul 6 '19 at 23:05
  • $\begingroup$ What you said is about the effect of reer on Gdp, but my question is related about the effect of gdp rate on reer. So, in my opinion as gdp increases, the exchange rate appreciates that also decreases the exports which means the depreciation of currency. So higher gdp can lead to depreciation of currency? $\endgroup$
    – Josh
    Jul 7 '19 at 1:27
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    $\begingroup$ Is it merely your opinion that, "When the domestic real gdp per capita increases then it has negative effect on domestic currency"? If so, you should not attribute this statement to your "Source". $\endgroup$
    – user18
    Jul 7 '19 at 2:31


The real exchange rate of euro and Greek economic growth Gregory T. Papanikos - So i got the information from this source

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    $\begingroup$ That is a comment and the link is to your download folder, which we cannot see $\endgroup$
    – Henry
    Jul 6 '19 at 23:01
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    $\begingroup$ Instead of posting an answer, consider editing your question to clarify it. $\endgroup$
    – Art
    Jul 9 '19 at 8:27

One way to link both is the J curve reaction of a given country's trade balance, which directly affects GDP, towards fluctuations in the domestic currency exchange rate.

  • 2
    $\begingroup$ This answer is exactly like the one appears here, in 2017: researchgate.net/post/… $\endgroup$
    – Art
    Jul 9 '19 at 8:30

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